Investigating the Nexus between Stock Market and Institutional Quality in Emerging Markets and Developing Countries: A Panel Data Analysis
Bibliographic record
Abstract
Purpose: This study empirically explores the impact of institutional quality on the stock market in Emerging Markets and Developing Countries (EM&DC), study utilizes individual institutional quality indicators as well as aggregated in the form of an institutional quality index and checks their impact on the stock market.
 Methodology: The study employs a sample of 43 Emerging Markets and Developing Countries for the time duration from 1996 to 2022. By applying the Generalized method of moments (GMM) and Principal Component Analysis (PCA).
 Findings: The result shows that Institutional quality is not good in these countries and plays a detrimental role in association with the stock market. Mostly individual indicators of institutional quality have a negative and significant impact on the stock market except voice and accountability have a positive and significant impact on the stock market. We also construct an Institutional quality index by applying Principal component analysis (PCA), which also has a negative impact on the stock market.
 Implications: The findings underscore the importance of institutional factors in shaping the financial development of nations. Through our analysis, it becomes evident that emerging markets and developing countries (EM&DCs) should prioritize enhancing their institutional frameworks, as these play a pivotal role in influencing financial development.
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.005 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.001 | 0.001 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.002 |
| Open science | 0.001 | 0.001 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".